Is the Volcker Rule good for New York?

The Volker Rule was approved on Tuesday, with its chief aim to prohibit regulated banks from wagering huge amounts of customer funds in the markets in the hope of making profits. Though the new rule will rein-in risk taking, many critics say that sort of proprietary trading was not the cause of the financial crisis, and the rule will only serve to make banks less profitable. In New York, where Wall Street is a powerful source of employment and tax revenue, the rule could have a significant impact.

Is the Volcker Rule good for New York?

Yes. In the long run the Volcker Rule will help New York and the nation by leading to sounder, institutions that will not require huge bailouts just to survive.

No. The banks will make less money, which will lead to lower wages to fewer people on Wall Street and lower tax receipts for the city.

Financial firms have been doing proprietary trading for decades. What is not being factored into the Volker Rule is the impact of Fannie Mae, Freddie Mac, and all sorts of government rules and regulations that impact business so much, it actually encourages excessive risk taking to create profits.

This is the best news the Public in the United States has experienced since the last “Bust” on Wall Street! The Volker Rule will truly enforce limitations on the high-risk activities of our Commercial/Investment Banking cabal that is always prone to take higher risks for higher rewards for themselves – letting the Public pick-up the pieces and pay for the loss. Paul Volker is truly a Public Servant for ALL the public!